Supply and demand forex articles
The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. The hard, cold reality of trading is that every trade has an uncertain outcome. The truth is, us humans have an innate desire to control things, situations, and supply and demand forex articles other people sometimes.
So, when that innate desire meets the uncontrollable market, there is bound to be some, shall we say, cognitive dissonance involved. When situations do not unfold how we want or expect them to, it makes us frustrated, angry or sad. Every trade has a random outcome When you achieve complete acceptance of the uncertainty of each edge and the uniqueness of each moment, your frustration with trading will end. As Mark Douglas discusses in his book Trading in The Zone, every trade you take is totally unconnected and independent of the last trade you took or the next one you will take. This truth is the foundation of understanding profit targets and why they give traders so much trouble.
It can be difficult to understand how you could make money in the market if every trade has an essentially random outcome because that fact seems to be in conflict with the fact that traders do make money consistently over time and it is possible. The difficulty lies in the fact that you need to hold two different understandings of trading in your mind simultaneously that seem to be in conflict with each other. The above sentence is how casinos make so much money each year off of seemingly random games. The key is to execute the strategy or edge consistently over a large enough sample size to see it pay off. It’s the ability to believe in the unpredictability of the game at the micro level and simultaneously believe in the predictability of the game at the macro level that makes the casino and the professional gambler effective and successful at what they do. Expectation is the enemy of trading success Now, let’s dig into the psychology behind why people struggle with profit targets and with trade exits in general, profits or losses.